“When you look at the global picture
it is no wonder prices have spiked upwards. Westpac is
forecasting New Zealand’s production may actually decline
for the first time in years. The truth is that the supply of
milk and global demand is finely balanced.

“This
makes markets skitty and while any increase in international
price is welcome, it is moot when you are yet to be fully
paid-out for what you have produced. In the North Island
many herds have either stopped production or are in the
process of drying off early.

“So forget images of
flash new cars because it is going to be a lean winter
on-farm and I believe many farmers will be looking at a cash
loss for the 2012/13 season.

“There is one thing
Government and councils can really help us out with and that
is tightening their belts to keep future rates and fee
increases to the absolute minimum. That message is one that
I feel will be welcomed by businesses outside the farm-gate
as well.

“With winter coming North Island farmers
are going into it with spartan pasture covers and low feed
reserves. Much winter feed has been used early meaning the
cost of supplements will rise along. There is also the need
to renew or undersow damaged farm pasture.

“The
markets know recovery from drought can take several seasons
for these reasons.

“While it has been damn tough,
we are incredibly proud of the way New Zealand’s dairy
farmers have prioritised animal health and welfare. I must
also thank all of the banks and the rural supply merchants
who have shown understanding through extending their lines
of credit.

“For consumers there will likely be
price rises but they need to know their milk and dairy
products are not as simple as mixing sugar and flavouring
with carbonated water. What the drought hopefully shows
them is how much care and effort goes into producing dairy
products.

“It underscores to me that faming is as
much a craft as it is a science,” Mr Leferink concluded.

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